16 December 2008
The Manager
Company Announcements Office
Australian Stock Exchange
Via Online Electronic Lodgement

The Directors are pleased to announce further encouraging results from exploration drilling around the Cerro del Gallo copper-gold-silver deposit in Guanajuato state, central Mexico. Drilling to the north of Cerro del Gallo intersected significant copper-silver mineralisation which lies outside the current mineral resource. This mineralisation is open to the north at depth, and extends southerly towards the current resource.

Highlights
SA-359 119.3m @ 0.17% Cu, 0.04g/t Au, 30g/t Ag from 570.0m (open at depth)
including 9.0m @ 0.14% Cu, 0.01g/t Au, 45g/t Ag from 588.0m
including 7.0m @ 0.16% Cu, 0.02g/t Au, 39g/t Ag from 604.0m
including 12.0m @ 0.32% Cu, 0.01g/t Au, 50g/t Ag from 619.0m
including 38.3m @ 0.25% Cu, 0.07g/t Au, 20g/t Ag from 651.0m
SA-356 13.72m @ 0.8% Zn, 0.5% Pb from 243.84m
DM-001 20.0m @ 0.4% Zn, 0.3% Pb from 61.0m

Exploration Drilling
Since early February 2008 exploration has focussed on generating new drill targets within a 2-3km radius of the Cerro delGallo deposit. This work identified 8 targets which were tested by 13 drill holes. Further drilling has been temporarily suspended since mid May 2008.
The intersection of copper-silver mineralisation in diamond core hole SA-359 indicates the Cerro del Gallo copper-gold-silver deposit extends northwards for at least a further 150m. Copper-silver mineralisation is open at depth and along strike. The incorporation of these copper-silver values into any future resource estimate should result in an increase in the size of the Cerro del Gallo copper-gold-silver deposit.
A summary of drilling results from targets within a 2-3km radius of Cerro del Gallo is shown in Table 1. The location of these targets and drill holes is shown in Figure 1, with drill hole collar locations listed in Table 2.
Several holes including SA-342 (Southeast Extension), SA-347 (Southeast Extension), SA-356 (El Pernazo), SA-357
(Quarry), SA-360 (Gamma) and DM-001 (Monument Hill), DM-002 (Monument Hill) and DM-003 (Monument Hill)
intersected low grade zinc ± lead mineralisation. This zinc ± lead mineralisation is interpreted to extend beyond the
copper-gold-silver mineralisation at Cerro del Gallo.

This work has identified a number of targets around Cerro del Gallo which require further evaluation.
The company's immediate objective is to focus on expediting the advancement of the Cerro del Gallo copper-gold-silver deposit towards development through ongoing metallurgical, engineering and associated technical studies.

Yours sincerely,
Kings Minerals NL